1936 – Age 6

Buffett started selling Juicy Fruit chewing gum packs. When asked for 1 piece, he would not sell as he thought he may be left with 4 pieces he could not sell. He made 2 cents profit per pack.

Buffett would also purchase Coca-Cola six packs for 25 cents from his grandfather’s grocery store – Buffett and Son. He would sell each Coke for 5 cents. Profit of 5 cents per pack.

1941 – Age 11

At 11 years old, Buffett buys his first stock – 6 shares of Cities Service (now known as CITGO – an Oil company) at $38 per share. He bought 3 for himself and 3 for his sister Doris.

That is all the money he had at that time. Practiced little to no diversification at a young age which he continued to do throughout his investment career. The stock price fell to $27 but soon went to $40. He sold the stock at $40, but, the stock shot up to $202 in the next few years.

He later cited this experience as an early lesson in patience in investing.

1943 – Age 13

Buffett files his first tax return and deducts his bike as a work expense for $35.

1945 – Age 15

1947 – Age 17

Buffett joins his friend Donald Danly to start a company called Wilson Coin Operated Machines. The business buys a pinball machine at a cost of $25 and places it in a nearby barber shop. Wilson Coin makes $50 per week for Buffett and Donald.

Buffett does tax returns for himself and Wilson Coin. In next few months they own 3 machines and a year later sells it for $1200.

1949 to 1954 – Age 19 to 24

Buffett’s savings reaches $9800.

He joins Columbia University and learns from Benjamin Graham. He was willing to work for Benjamin Graham, even for free, but was not offered a job.

Buffett returned to Omaha, purchased a Texaco station, but did not go well. He was also working as an investment salesman for Buffett-Falk & Company, at his father’s brokerage firm.

In 1954, Benjamin Graham called him again and offered him a job for $12,000 a year. During this period, Buffett was able to also work closely with Walter Schloss.

1956 – Age 26

Graham decides to retire and fold his business. Buffett’s savings have grown from $9,800 to $140,000.

Buffett returned to Omaha and on May 1, created Buffett Associates Ltd. Seven family members and friends invest a total of $105k. Buffett invested only $100k.

1957 – Age 27

Buffett created more partnerships and was managing a total of 5 partnerships, all from his home.

1958 – Age 28

After 3 years, Buffett doubled the partner’s money.

1959 – Age 29

Buffett and Munger Best Friends Forever

Buffett was introduced to Charlie Munger by his friend Edwin Davis at a dinner. Charlie Munger later becomes the Vice Chairman of Berkshire Hathaway.

1961 – Age 31

The partnerships are worth a few million and Buffett made his first million dollar investment in Dempster – a windmill manufacturing company.

Sanborn Map Company accounted for 35% of the partnerships’ assets. He explained to the partners that in 1958 Sanborn was selling at $45 per share when the value of its investment portfolio itself was at $65 per share which meant that it was undervalued by $20 per share with a map business coming in for nothing.

Buffett reveals that he earned a spot on the board of Sanborn.

1962 – Age 32

Buffett goes to New York to meet his old acquaintances to include more partners and raise capital. He collects a few hundreds of thousand dollars. Buffett partnerships is worth $7.2 million. Buffett then merges all partnerships into one and rename it as Buffett Partnerships Ltd.

Munger introduces Buffett to Harry Bottle, CEO of Dempster, who cut costs, laid off workers, and turned around Dempster to generate cash. At this time, Buffett notices Berkshire Hathaway selling for $8 a share and starts buying aggressively.

1963 – Age 33

Buffett sells Dempster for a $2.3 million gain, 3x times the invested amount.

Buffett aggressively purchases Berkshire paying $14.86 per share while the company had working capital of $19 per share. This did not include the value of fixed assets. Buffett partnership becomes a single largest shareholder of Berkshire Hathaway.

1964 – Age 34

American Express is victim to the salad oil scandal and shares fall to $35. Buffett saw the value and bought 5% of the company.

1965 – Age 35

Buffett invests $4 million in Walt Disney after a meeting with Walt Disney himself which is almost 5% of the company. Buffett takes full control of Berkshire Hathaway and names Ken Chase to be the CEO.

1966 – Age 36

Buffett closes the partnership to new money. Buffett writes in his letter that “unless it appears that circumstances have changed (under some conditions added capital would improve results) or unless new partners can bring some asset to the partnership other than simply capital, I intend to admit no additional partners to BPL.”

Buffett invests in Hochschild, Kohn which was a department store in Baltimore.

Buffett’s personal investment in the partnership is now approximately $6.8 million.

1967 – Age 37

Buffett Partnership now owns 59.5% of Berkshire Hathaway. Berkshire Hathaway pays a 10 cent dividend. This is the first and only dividend it has paid ever.

The Partnership is worth $65 million. Buffett’s personal investment is $10 million. Buffett tells his partners that in the current raging bull market he is unable to find good investments.

He also briefly considered leaving investing to pursue other interests.

American Express hits $180, making a $20 million profit on $13 million investment.

1972 – Age 42

1973 – Age 43

Berkshire starts buying stocks in the Washington Post company (Publishing). Buffett becomes close friends with Katharine Graham who controlled the company and its flagship newspaper and becomes a member of the board of directors.

1974 – Age 44

Due to falling stock prices, the value of Berkshire Hathaway portfolio begins to fall. Warren’s personal network falls by more than 50%.

Warren’s personal net worth has ballooned to $620 million and he makes the Forbes millionaire list for the first time.

1984 – Age 54

Berkshire buys $139 million of Washington Public Power Supply System Bonds, invests in Exxon (Oil) and Northwest Industries (Diversified).

1985 – Age 55

Buffett shuts down Berkshire Hathaway’s textile business.

He helps merge ABC TV Network and Capital Cities (Communications). Buffett is forced to leave the board of Washington Post, as the legislation prohibited him from sitting on the boards of both Capital Cities and Washington Post.

Berkshire purchases Scott and Fetzer who boast products like Kirby vacuums and World Book Encyclopedia. Also buys Fecheimer Brothers (Uniform company) and Beatrice (Food).

2002 – Age 72

Berkshire and other investment groups buy $500 million in bonds issued by Level 3 Communications, the former Omaha fiber network company.

Buffett enters a deal where $11 billion worth of forward contracts is delivered in US dollars against other currencies. By April 2006, his total gain on these contracts is over $2 billion.

2003 – Age 73

Berkshire acquires McLane (wholesale distributor), Clayton Homes (housing) and Burlington Industries, one of the world’s most diversified marketers and manufacturers of soft goods for apparel and interior furnishings.

2006 – Age 76

Buffett announces in June that he will give away more than 80%, or about $37 billion, of his $44 billion fortune to five foundations in annual gifts of stock, starting July 2006. The largest contribution will go to the Bill and Melinda Gates Foundation.

Berkshire stock crosses $100,000 per share.

The list of acquisitions and stock purchases continue.

Business Wire (media distributor)

Russell Corporation (athletic apparel)

80% of the Iscar Metalworking Companies (IMC) in a transaction that valued IMC at US$5 billion.

Applied Underwriters (insurance)

TTI Inc (electronic components distributor)

Southern Energy Homes (utility)

Brooke Sports (athletic apparel)

2007 – Age 77

In a letter to shareholders, Buffett announces that he is looking for a young successor or perhaps successors to run Berkshire.

Buffett had previously selected Lou Simpson, who manages the investment via GEICO, to fill that role. However, Simpson is only six years younger than Buffett.

The companies bought that year include

Boat America Corporation, which owns Seaworthy Insurance Company and controls the Boat Owners Association of the United States.

Leading jewelry manufacturers Bel-Oro International and Aurafin LLC, which merges into Richline Group.

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